Which of the following statements is false?
A)The Bretton Woods system is the most recent example of a fixed exchange rate system.
B)Under the gold standard system,each country agreed to buy or sell gold in exchange for currency at a fixed exchange rate.
C)Under the Bretton Woods system,the values of various currencies were fixed in terms of the U.S.dollar,which was set at $35 per ounce of gold.
D)The recession in the U.S.economy was the main reason for the breakdown of the Bretton Woods system in the early 1970s.

Question

Quizplus · Accepted Answer

The recession in the US economy was not the main reason for the breakdown of the Bretton Woods system. The system collapsed due to various factors, including the United States' large trade deficit and the unsustainable nature of the fixed exchange rate system.

Which of the Following Statements Is False